Submission: Access Regime for the ATM System

Consumer Action supports the RBA’s efforts to improve the efficiency and competitiveness of payments systems in Australia, including the ATM system. As the Consultation notes, interchange fee amounts are much higher than the underlying cost of providing ATM withdrawals that they are supposed to reflect,1 and the foreign ATM fees that financial institutions charge their customers for using another institution’s ATM are significantly higher again than the underlying interchange fees.2 The RBA notes that this is due to a lack of competitive pressure to reduce interchange fees or foreign fees.

However, Consumer Action does have concerns that there are shortcomings in the proposed Access Regime that will lead to inappropriate outcomes and will negatively impact on consumers